China Responds with Tariffs of 125% While the US Intensifies Trade War with Record 145% Tariffs

Trump increased taxes on Chinese goods to a record 145 percent, and Beijing responded with retaliatory 125% penalties.

As tensions between the two economies escalate in what is quickly turning into the most serious trade conflict in decades, China has announced a broad hike in tariffs on American imports, boosting them to 125 percent.

The action follows President Donald Trump’s decision to raise tariffs on Chinese imports to 145%, intensifying a protracted trade war that has already caused supply networks and markets throughout the world to tremble.

In a forceful statement released on Friday, Beijing’s Finance Ministry denounced the new U.S. action, describing the tariff hike as “abnormally high” and accusing Washington of “unilateral bullying and coercion.”

“The United States’ imposition of excessively high tariffs on China is a grave violation of fundamental economic laws, international and economic trade regulations, and common sense,” the ministry stated.

When President Trump originally announced his global tariff program, China, which continues to be the second-largest supplier of US imports, was subject to a 34 percent tariff. Subsequent rounds of tit-for-tat levies have already caused that rate to soar, with the most recent increase bringing the US tariff burden on Chinese imports to a record 145 percent.

At first, China imposed a 34 percent tariff on US goods in response to Washington’s levies. Beijing responded with 84 percent tariffs after the United States increased them to 104 percent as the conflict grew more intense. The latest hikes represent the most drastic actions to yet.

In the midst of the intensifying economic conflict, President Xi Jinping has warned that “there are no winners in a tariff war” and urged the European Union to stand with Beijing in opposing what he described as American “bullying.”

President Trump expressed cautious optimism on Friday, saying he still hopes to reach a trade agreement with China, despite the escalating dispute.